KKR Impact Fund Acquires Energy Efficient Data Center Cooling Solution Provider CoolIT
Global alternative asset and private equity investor KKR announced today the acquisition of CoolIT Systems, a provider of energy efficient scalable liquid cooling systems for data centers.
KKR’s investment in CoolIT was made through its Global Impact strategy, launched by the firm in 2018 to invest in companies with business models that provide commercial solutions to environmental or social challenges, particularly those contributing measurable progress toward one or more of the UN Sustainable Development Goals (SDGs). According to KKR, CoolIT directly supports SDG 7, “Affordable and Clean Energy,” SDG 9, “Industry, Innovation and Infrastructure,” and SDG 13, “Climate Action.”
Data centers globally are responsible a growing share of climate impact, already reaching up to 2% of the world’s carbon emissions, nearly equivalent to that of the airline industry, as demand for data center resources continues to increase rapidly.
Kyle Matter, Managing Director and Head of KKR’s Global Impact team in North America, said:
“Increasing data and computing needs are on a collision course with sustainability considerations – the data center industry is expected to consume 8% of the world’s energy by 2030…We also recognize that as a society, we are grappling with the enormous energy usage and related environmental impacts that are only expected to accelerate with the rise of AI and other high performance applications.”
Founded in 2001, Calgary, Canada-based CoolIT initially designed direct liquid cooling systems targeted at the desktop gaming industry, and in 2014 began designing products for datacenters and server OEMs, responding to the need for direct liquid cooling in the data center industry. The company’s solutions are designed to improve equipment reliability and lifespan, reduce operating costs and allow for higher server density, while also reducing energy demand, carbon emissions and water consumption, relative to legacy air-cooling technology.
Steve Walton, Chief Executive Officer of CoolIT, said:
“Our business has evolved tremendously over the past few years and today we are proud to be one of the most trusted providers of liquid cooling solutions to the global data center market. KKR shares our perspective on the significant opportunity ahead for liquid cooling. Having access to KKR’s expertise, capital and resources will put us in an even better position to keep scaling, innovating and delivering for our customers.”
According to KKR, the investment in CoolIT will support the company’s growth, amid growing demand for energy-efficient data center cooling. KKR said that CoolIT will also expand its equity ownership program, making all employees owners in the company.
Evan Kaufman, Director at KKR, said:
“By combining our manufacturing and decarbonization expertise with CoolIT’s track record of product innovation, we expect to further scale its best-in-class direct liquid cooling solution to meet the anticipated demand for higher density, more energy efficient data centers. Importantly, we look forward to working with Steve and the entire CoolIT management team to invest additional capital and resources into expanding its cooling solutions across new applications, customers and end markets.”